I never use Heal.
Flash heal in heroics (Unless your are way overgeared for it.) is ONLY a emergency heal.
I use penance on CD, I dont save it.
However, You need more spirit, 1100 at ilvl 353? you should have around 1900-2000 by then at least =/ Reforge/Gem/Enchant?
Edit: Also, an armory would be nice.